Headlines – First Ideas Limited


No Chinese money, no problem, says DMO

The Debt Management Office (DMO) indicated on Thursday that Nigeria may not need to worry over China’s decision to cut its lending to Africa.

FAAN sacks officials for extorting 14 year old girl at Lagos airport

The Federal Airports Authority of Nigeria (FAAN) has sacked officials involved in extorting a sum of N8,000 from a 14-year-old girl at the Lagos airport, Murtala Muhammed International Airport (MMIA). The officials have also been banned from working in any Nigerian airport, to serve as a deterrent to others.

Why Russia’s switch to UnionPay may drive acceptance in Nigeria

UnionPay, a Chinese digital payment solution may begin to gain a wider scale of acceptance in Nigeria as its cards are already accepted for cash withdrawal and balance inquiry at all ATMs except those belonging to Standard Chartered bank.

EFCC moves Obiano, former Anambra governor, to Abuja

The Economic and Financial Crimes Commission (EFCC) has moved Willie Obiano, the former governor of Anambra State to its headquarters in Abuja. Obiano handed over to Chukwuma Soludo, a former governor of the Central Bank of Nigeria at the Government House, Awka, on Thursday

Ukraine and the west’s double standard

Multilateralism did not die with the invasion of Ukraine by Russia. It died a long time ago. It died when George Bush’s United States attacked a sovereign country called Iraq under the guise of demilitarising that country. That ‘shock and awe’ attack on Iraq that was so well rhapsodised and glamorised by embedded CNN

Infrastructure Rollout Will Enable Africa to Expand LNG Exports and Meet Global Demand

 Global energy transition policies are pushing for an increase in the use of gas as a transactional energy resource, thereby increasing the demand for liquefied natural gas (LNG).  

Nigeria Borrowed N6.64tn, Serviced Debt with N2.93tn in 2021, says DMO

 The Debt Management Office on Thursday said Nigeria’s total public debt stock increased to N39.56tn in 2021 from N32.92tn in 2020. The Director-General, DMO, Patience Oniha, said this at a media briefing in Abuja.

AfDB Secures $15.6bn for Lagos-Abidjan Highway Corridor

 The President of the African Development Bank, Dr Akinwumi Adesina, announces that the bank has secured $15.6bn for the construction of the Lagos-Abidjan highway corridor, which would ease transportation across West Africa.  

Businesses are Suffering, Leaders Should be Held Accountable – Elumelu

 The Chairman of United Bank for Africa Plc, Tony Elumelu, has stated that businesses in Nigeria were suffering and citizens should hold leaders accountable. Elumelu noted that despite being a rich country, over 90% of Nigerians lived in hardship and poverty.  

Russia-Ukraine Conflict Causes a Storm Across Commodity Markets 

 S&P Global Ratings believes that there’s a wide range of channels through which the conflict in Ukraine may affect emerging markets (EMs), according to its report published today, titled “Emerging Markets Monthly Highlights: Russia-Ukraine Conflict Causes A Storm Across Commodity Markets”.

 YC-backed Simplifyd is Set to Become Africa’s Destination for Data free Internet Access

Simplifyd Systems Inc., a YCombinator backed Nigerian startup with the ambition to become the platform of choice for data-free access to the Internet across Africa, has taken a huge leap. 

Russia-Ukraine Crisis: Nigeria to Issue New Policy on Trade Relations

 The federal government says it will develop a new policy on trade relations with the former Union of Soviet Socialist Republics (USSR) countries following the Russia-Ukraine crisis.  

Federal Government to Auction NIMEP to Fund Mineral Exploration

 According to the Minister of Mines and Steel Development, Olamilekan Adegbite, at the Nigeria Mining Summit organised by the Lagos Chamber of Commerce and Industry (LCCI), NIMEP would be sold through auction to have a revolving fund to carry out more exploration activities in the country. 

NERC Admits To Increase In Electricity Tariff

The Nigerian Electricity Regulatory Commission (NERC) has admitted that it reviewed electricity tariff in February which resulted in increase in cost for some consumers. NERC had late last year said it was differing any increase in electricity tariff until after it has concluded negotiations with labour unions in the country.  

All Systems go for Fed’s Liftoff of Interest Rates

 The Federal Reserve on Wednesday will close the door on its ultra-easy pandemic-era monetary policy and step up the fight against stubbornly high inflation with the first in what is likely to be a series of interest rate hikes this year.

NCC Upgrades Emergency Communications Centres

 In continuation of its vision and strategy to ensure promptness, effectiveness and efficiency in the handling of emergency call services through the Emergency Communication Centres (ECC), the Nigerian Communications Commission (NCC) has embarked on the deployment of Computer-Aided Dispatch (CAD) solution.  

PayPal Expands Payments Services to Help Ukrainian Citizens, Refugees

 PayPal Holdings Inc (PYPL.O) on Thursday expanded its services to allow Ukrainian citizens and refugees to receive payments from overseas, a move a senior Ukrainian official called a huge help as Russian forces continued to attack the country.  

Be Ready to Lose All Your Money in Crypto, EU Regulators Warn

 Consumers risk losing all their money invested in cryptoassets and could fall prey to scams, the European Union’s securities, banking and insurance watchdogs said in a joint statement on Thursday.  

 Jaiz Bank to Expand Non-Interest Banking Services Beyond Nigeria

Jaiz Bank Nigeria’s pioneer non-interest bank plans to expand its services to the Sub-Saharan African region in the next five years. The Managing Director/CEO, Jaiz Bank Plc, Mr. Hassan Usman, disclosed this in a recent interactive session with financial market stakeholders.  

FCCPC Freezes Accounts of Digital Money Lenders

 The Federal Competition and Consumer Protection Commission (FCCPC) said it has frozen the accounts of some money lenders being investigated for violating the rights of consumers.

Investors Lose N83.44bn WoW as NGXASI Dips by -0.33% to Close the Week Negative

Equities market closed on a negative note, as NGXASI depreciated by -0.15% to close at 47,282.67 basis points as against -0.02%  depreciation recorded previously. Its Year-to-Date (YTD) return currently stands at +10.69%.         

Market breadth closed negative as PZ led 12 Gainers as against 20 Losers topped by MRS at the end of today’s session an unimproved performance when compared with previous outlook.   

Market turnover closed positive as volume moved up by +150.07% as against +64.39% uptick recorded in the previous session. ETRANZACT, FIDELITYBK and FBNH were the most active to boost market turnover.  ETRANZACT and FBNH topped market value list.

ETRANZACT leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

Nigeria’s 2021 Debt Stock Climbed as New Eurobond Issue Settled at 8.375% Coupon

Nigeria will become the first African country to access the international capital market in 2022. Through the Debt Management Office (DMO), the Federal Government announced the government raises US$1.25bn 7-year Eurobond. The issue had a coupon of 8.75% per annum, but investor interest reduced the rate to 8.375%.

The subscription remained high at US$3.68bn, indicating an oversubscription of +198.08%. According to the DMO, the Offer attracted investors from the United States, Europe, and Asia; Nigerian investors also participated in the Offer with a total subscription of US$60m.

This announcement comes after data for the total debt stock for 2021 was released by the DMO. Total debt rose Y-on-Y by +20.17% to N39.56trn (US$95.78bn) from N32.92trn (US$86.39bn) stock. Debt-service to revenue was 76.2% as of November 2021, although the DMO seems to play it safe by using the debt-to GDP ratio, which currently stands at 22% as of 2021.

The Director-General of DMO, Mrs. Patience Oniha, tried to make a case for the government, stating that Nigeria was prudent in managing its debt-to-GDP ratio at 22% as the country’s Medium Term Expenditure Framework (MTEF) sets this ratio at 40%. The World Bank and ECOWAS set a 55% and 70% benchmark for countries like Nigeria.

However, Analysts do not see the debt-GDP ratio as a good metric to measure the sustainability of the debt size of the economy. The cost of the debt related to revenue generated should be the crux (see chart 1 below).

Inflation Rate Rises to 15.7%, as Fuel Scarcity and Rising Int’l Crude Oil Prices Bite Harder

Following the supply of bad quality fuel to the local retail market, the Nigerian National Petroleum Corporation’s (NNPC’s) efforts to recall sizable volumes of the contaminated motor spirit has left long queues at filling stations across the country. Compounded by a global energy crisis associated with the ongoing Russian-Ukrainian war, the landing cost of Jet A1 fuel has steadily risen with the price of automotive gas oil (AGO) or diesel piercing above N700/litre. The effect on manufacturers has been devastating.

The government’s insistence on domestic PMS subsidy has created a situation of a rock and a hard place for Nigeria’s Federal fiscal finances. To maintain the subsidy programme, the Minister of Finance announced the government’s plan to use $2.2bn of the funds raised through a Eurobond Issue in 2021 to foot the large bill.

Current Nigerian inflationary trends mirror a global phenomenon resulting from global crude oil market supply conditions and problems faced in other commodities markets. Analysts have, however, noted that oil-producing countries like Venezuela and Iran have ramped up production to pick up the slack in global oil markets. Other countries are taking advantage of opportunities created in the broader global commodities market.

About the Author


First Ideas Limited is an investment and financial advisory company established in 1994 to provide advisory services to high net worth individuals, trust funds, financial institutions and medium sized companies in growth sectors.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these